Milestone Group, the specialist provider of optimised fund processing solutions to the global funds industry, today announced the launch of its new Tax Expense Calculation module within its pControl platform. Designed to address the complex requirements of Australiaâs superannuation system, this new component automates tax accrual calculations for individual tax paying funds, or single taxable entities for industry funds, asset managers, multi-managers and life companies.
Increasing demands for transparency, and the move towards more frequent unit pricing or fund valuation, have resulted in a growing requirement for accurate daily calculation of tax accruals. This is especially challenging for single taxable entities managing complex fund structures or inter-funded products as the allocation of income in the fund structure to calculate liabilities requires a high degree of precision. In addition, having the fund structure visible within pControl allows the daily allocation of tax liabilities to be performed as a single process that runs automatically. In turn, this process can be integrated with unit pricing so that the price reflects the true calculation of the tax position at any given time.
âWith volatility in markets, and the increased sensitivity to compliance and unit holder equity issues, we are seeing an increased demand for the production of timely and accurate reporting of Current Tax Expense, Deferred Tax Asset and Deferred Tax Liability positions, which we have addressed within this module,â said Gary Wearne, Milestone Groupâs Product Head of Tax and Accounting. âAccuracy in the calculation of a fundâs tax position creates both confidence in net asset values and transparency of after-tax performance. Better transparency of overall tax liability leads to improved tax management in the investment process. Under the current market reforms driving to level the cost playing field between retail and industry fund operators, any point of difference in investment performance is becoming an even higher priority.â
Milestone Groupâs pControl Tax & Accounting solution provides a full range of functionality, including Tax Expense Calculations, Distribution Calculations, Distribution Processing, Gain/Loss Management, General Ledger, and Account Views. The solution provides a single view of the fund structure, so that any transaction entering the system is updated in all ledgers simultaneously. This negates the risk of accounting or tax ledgers being out of sync with operational records, which otherwise might lead to reconciliation and journaling overheads.
Uniquely, these functions can be deployed as a comprehensive single solution for organisations that require a fully-integrated tax and accounting system to manage complex interfunded structures. Alternatively, organisations can select just the functions they need to solve highly-specific requirements that would previously have been performed by separate systems or outsourced to specialist providers.
âHistorically, the perception is that these functions are difficult to automate, which is why many organisations continue to use dedicated spreadsheets or heavy point-solutions that are not well integrated,â said Mark Neary, Milestone Groupâs Managing Director, Client Relationships. âThis has led to an industry practice of periodic estimation and daily tax provisioning. By contrast, pControlâs tax and accounting capabilities provide a seamless and integrated system for automating these processes to deliver considerable cost savings and efficiency improvements.â
pControlâs Tax Expense Calculation module is the latest addition to Milestone Groupâs suite of transformational funds processing applications built within the pControl platform, aimed at reducing industry cost structure.